Tagged With "One Rate"
Reply
Re: Target GP Margins
There are a lot more of those than there used to be. That's why our industry has to change the way they add prospects to the pipeline. They are going to have to actually start marketing for a change (spend dollars on marketing instead of salespeople) & do things to position themselves as a resource companies will contact when they need something versus salespeople throwing a million lines in the water hoping they get a bite. It's got to be all about generating in-bound leads and...
Reply
Re: Toshiba now has tier based CPC's?
Our Ricoh SSS told us about it. I'd love to be the first one to push it & make everyone else react. Plus, it would improve profitability if we could charge a higher rate for higher page coverage.
Reply
Re: Nsi Autostore
Personally, I have not been successful in selling Auto Store so I'm probably not much help. However, I would ask why it would be necessary to bundle these things. If I was fortunate enough to be in a situation where the customer sees the value of the software and this criteria is necessary, I would propose a basic workflow and 3rd party DMS integration and Sharepoint integration would be professional services at a billable rate or discounted block of time.
Reply
Re: Charge for IT support
Art, We charge an hourly rate for onsite, 1/2 that rate for remote support. We offer it as part of the Service Contract, as well as a separate block time (5, 10, or 20 Hours). Vince
Reply
Re: Xerox explores sale of leasing finance unit: sources
Oce did that 10 years ago and went bust. They didn't realise how much they relied on the monthly rental income and how inflexible third party leasing companies are when you want to upgrade mid term. The financing arm is usually the most profitable side of the business. High interest rate to customers, low rates for them and if the customer goes bust you generally get you equipment back and at the end of the contract you get your gear back.
Reply
Re: Color MFP Trends, Tactics, etc
I have one of these in the P4P market, after 4 months all seems well and customer is satisfied with media offereing and quality. The one thing that has changed for this unit, since its the same engine as the MPC6000 and MPC7000 is that default from the factory is 11x17 single click and lower consumable costs. Making an inroad will depend on how dealers will position this unit, dealers more than ever can now be competitive with single click 11x17, and if you're going to play in the P4P you...
Reply
Re: Is selling at cost the future for print hardware?
Hrmm, well, sure they are. Notice it doesn't say anything about Service or Supplies, we can assume those are either at their normal rate or slightly elevated. It doesn't say anything about lowering the lease rate on this MFD you are buying at "cost" either, so we can assume those are also either at normal or slightly elevated. If we also assume that their sales will increase by X amount due to the promotion, the only loss they could expect from this is if X amount of additional revenue...
Reply
Re: Personal Property Tax
First of all, we don't have this problem because the lease company we use (Clune Leasing) doesn't charge property tax. However, the potential pitfalls: 1.) Using a rate that was to include it and then having the lease company deny it later. That happened to us with Marlin Leasing. Make sure to get documentation ON EVERY DEAL done this way that all property tax is included. 2.) Property tax is a percentage of the funding amount. Anything added to the lease that raises the amount of the lease...
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Thanks Montecore, That makes sense from a business standpoint. I'm still having a hard time with the math though. If you are trying to figure out the effective purchase price, but only know the monthly lease payment, # months, and lease rate - do you have any ways to figure out the purchase price? 0.0302 percent of $6,200 is $198 so that only adds up to $6,339. But if you subtract $6,537 by $6,339 then you get $198 again. Suggesting that the purchase price is roughly 2 times the total lease...
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
If Montecore's explanation didn't cover it for you, then there must be some confusion what the question is. The monthly payment divided by the rate factor is the original funding amount. You'll notice there is no multiplication in this equation so if there is in yours, then your goal must be something different than determining the original purchase price. If you are trying to replace a unit by providing something for the same monthly payment, Montecore's equation tells you what your sales...
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
When rereading your posts I see that you are attributing a value to the lease rate which you cannot do. .0302 is not $.0302 nor is it 3.02% or any such thing. .0302 is just a factor. Behind the scenes of the lease company's spreadsheet there obviously is an interest rate that contributes to the establishment of the rate factor but the factor is a derivative of a multipile of issues that combine to establish a number (rate factor). It is really no different than the square root of pi being...
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
The rate factor actual means $30.02 per thousand dollars so you could do it this way 6.2 x 30.20 = monthly payment.
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
You're getting good answers, but sometimes the third of fourth approach to answering the question helps. Not to imply that the previous answers are incorrect or incomplete. 1. "Lease Rate" is a convenience, given to you so that you can multiply your selling price by a number and end up with a payment acceptable to the lessor. 2. The "Short answer" from your leasing company is "We'll do that deal for 36 months at 0.0302". 3. The "Long answer" which they will seldom give you is: - We believe...
Reply
Re: Calculating Lease Costs and Effective Purchase Price W/O interest
Thanks Sam for that nice viewpoint. By the way I really enjoyed looking at your website...there was alot of eye opening info there....thanks! GIntel: Let me give you another example that starts to get tricky when you have a buyout to consider. Here is the formula: (Machine Cost + Buyout + Profit) X rate factor = total monthly payment that should be (but does not need to be) less than CURRENT monthly payment for similar equipment. Define similar equipment? That means if they have a 20ppm unit...
Reply
Re: Latest Lease Factors
Plus, so many lease rate factors are packed from management. Here's some I've seen 36 months .0284, 48 months .0242, 60 months .0200. The dollar amount of the deal also plays a role in the rate factor.
Reply
Re: Ikon Cost Per Page for Ricoh 1357 Pro
That's insanity. Have you seen the hardware pricing for the system? Maybe they're front-loading the price of the machine to buy down the service rate.
Reply
Re: Lease Approvals
I thought we had a thread similar to this and maybe even a poll. I would say that 90% of my deals are getting approved by the likes of GE, DLL, Great America, etc, however I am pre-screening customers now and not even taking apps from some, due to thier industry and or financial status. Some have bought and others have tried elsewhere, thus the reason my approval rate is high is because of the pre-screening and I believe would be far lower than 90%.
Reply
Re: The Effect Currency Evaluations have on the MFP industry
The Japanese Yen has reached a 15 year high against the USD forcing all Japanese companies to intensify their efforts to manufacture their products abroad. Japan Iron and Steel Federation Chairman Eiji Hayashida said at a regular press conference that an exchange rate of around 90 yen against the dollar is appropriate for fair global competition. "The (current) exchange rate in the 81 yen range is very harsh when (Japan's) present economic conditions and the competitiveness of (Japanese)...
Reply
Re: Judge approves a $4.9 million settlement to businesses who were charged payment incre
A judge ruled in favor of a class action lawsuit involving businesses nationwide, including ones from South Florida. South Florida businesses that are part of a larger class action lawsuit against two companies were awarded a portion of a final settlement of $4.9 million after the judge ruled in the class’s favor, a press release said. “Approximately nine thousand class members nationwide were included in the settlement,” said Lance Harke, lead attorney for the case from law firm Harke...
Reply
Re: Q. How does your company handle networking charges?
Assuming we've used the 2 hours per machine connectivity time that we include for each install and that this isn't resolving issues that we created, this would be billable at an hourly rate in the neighborhood of $100 per hour. Depending on availability, the work would be done by either an SE, break/fix tech or a member of our Network Services team. We are an independent dealer in the Southwest that provides either hourly support, block time or full-on Managed Network Services. We can do the...
Reply
Re: Comp Plan Poll
Above a base salary. I am paid as follows: A flat % of the total revenue based on the Gross Profit. The higher the GP the flat % is increased. Once GP is higher that 15% I am paid a % of the GP in addition to the previously mentioned Flat % of Revenue. this is on hardware revenue only not aftermarket. Which is the reason that aftermarket is spiraling downward. Comp us on aftermarket and watch click rate go back up.
Reply
Re: Comp Plan Poll
bear95 We have a comp rate clicks for new customers only and the % is pitiful. I'm in agreement with you!
Reply
Re: Would You Loan this company Money?
Currency in Millions of U.S. Dollars As of: Mar 31 2008 USD Mar 31 2009 USD Mar 31 2010 USD Mar 31 2011 USD 4-Year Trend NET INCOME 16.0 1.9 -21.6 -32.6 Depreciation & Amortization 6.3 6.5 4.7 9.0 DEPRECIATION & AMORTIZATION, TOTAL 6.3 6.5 4.7 9.0 (Gain) Loss from Sale of Asset -0.1 0.2 0.1 4.9 (Gain) Loss on Sale of Investment 0.9 0.1 0.0 -- (Income) Loss on Equity Investments -0.3 -0.2 -0.3 -- Change in Accounts Receivable 12.0 5.6 8.7 -6.1 Change in Inventories 0.3 -16.3 25.8 -4.0...
Reply
Re: Why is single clicking an 11×17 on a “copier” legal?
Actually, the real misleading practice is when the machine is set to double-click 11x17. It is one piece of paper, one printed page, one click. Like having a car odometer that registered two miles when you drove the car one mile uphill, or registered two miles when you drove one mile at high speed. The industry simply developed its own conventions with the single/double click convenient for both the end-user and the dealer. Rather than a click rate for each paper size (similar to two...
Reply
Re: Why is single clicking an 11×17 on a “copier” legal?
Price at your acceptable margin. If your price is paid, take the business since it already has the acceptable margin. If customer will not pay your price, walk, secure in the knowledge that taking the deal would not provided your acceptable margin. I think we are overcomplicating it. Deal XYZ on a P4P has $X of equipment margin, $Y of lease margin, and $Z of service margin at the agreed rate, regardless of whether we are billing single or double click. If $X+$Y+$Z is acceptable, move...
Reply
Re: Selling Copiers & MFP's "How to be Successful"
An opportunity would be the delivery of a quote for a product or service. We rate opportunties at 3 points!
Reply
Re: Transform Global 2012
Day one has passed and overall, I'm impressed with the event. I actually ran into a couple of P4P members and finally after all of these years got to meet Lee Rummage from RJ Young. On Wednesday evening Oki hosted the evening reception @ Hiltons Signature Island. Food, drinks and networking, at this time I also had to the chance to meet Greg Walters (Death of the Copier) and now the newly elected President of the MPSA. I also ran across many new contacts and believe it or not many readers of...
Reply
Re: Marlin Does Not Disclose Possible Loss Of Evergreen Payments
I’m surprised that there isn’t more leasing chatter because there seems to be a growing awareness of how most leasing companies make their money. The member who correctly analyzed Marlin’s profits was right on the mark. Not many leasing companies are public entities but when they are one can glean a lot of info from their 10Q’s and 10K’s. The leasing industry vigorously defends evergreen to its detriment. Whenever a state bill is introduced to restrict or outlaw evergreens they send someone...
Reply
Re: 0% Copier Financing
SSG: I have never seen a 36 month Zero interest lease for a dollar purchase option. I've heard that the reason there is no real low or zero type of finance lease ($1) because it would be extremely difficult for them to repo a copier that is in someone office or house. The only way I know to make it work is to fudge the numbers. Meaning you sell the system for MSRP and then offer them a $1.00 purchase option. The leasing company would fund you off of the $1.00 out finance rate. Thus if the...
Reply
Re: 0% Copier Financing
A lot of confusion around this topic. The leasing companies have a beat-down coming if they continue to falsely promote their FMV promo rates as "0% leases". Example, a recent manufacturer promo offered "0% FMV Lease!" for 36 months. But the lease rate for a 36 month deal was .027777. On a $10,000 machine, the payment was $277.77. The sum of 36 payments, $9,999.72 ($10,000). Problem? The machine still belongs to the lessor. Assuming that the residual value was 15% ($1,500), plug the...
Reply
Re: 0% Copier Financing
0% Interest financing is a popular financing tool across the board - you see it in the auto industry, furniture, IT (such as your apple example). It has never been a big seller in the Office Equipment industry business due to the business model that the dealers/manufacturers sell with. Many dealers are selling FMV leases (we like the upgrades)and not highlighting to the customer the actual cash purchase price of the equipment. 0% works best when a customer see's a purchase price (let's say...
Reply
Re: 0% Copier Financing
Talking to several SMB business owners the objection to leasing is that they perceive the interest rate to be 15-20%. When we tell them the actual rate is around 7% because of low current interest rates, the objections seem to fall away. I appreciate making the differnce between 0% Financing and 0% leasing. I actually want to promote 0% Financing. I do think it might catch a buyer's attention in multiple competitive quotes. You are right in the copier business we are more so trying to sell...
Reply
Re: 0% Copier Financing
What is the detailed calculation to figure out the actual interest rate on a lease rate? Take for example, a 60 month FMV term, 5% Residual with a rate factor of $20.92 monthly. $2,501- $5,000 value. Thanks,
Reply
Re: 0% Copier Financing
Financial calculator (HP12c) 60 [n] 1000 [pv] 50 [-][fv] 20.92 [-][pmt] [i] is monthly, 12 [x] is annual The formula is PV = FV(1 + i)-n + PMT 1 - (1 + i)-n i You can flip the formula around to solve for i, but financial calculator is faster. In your example, i is .8853 per month or 10.62 annual. Probably didn't format well, go to "Present Value of an Annuity" here http://people.hofstra.edu/stef...World/Summary10.html
Reply
Re: 0% Copier Financing
All of this is fine and good as an intellectual exercise but in my 30+ years I have never answered the question of interest rate. I have been asked for it a lot but unless you have a guaranteed FMV to te customer, you can't calculate the actual Interest rate and evn then you should probably calculate in the forced insurance, interim rent, and a 3-4 evergreen payments as well. Besides, unless they plan on exercising the purchase option, the interest rate doesn't matter and if they do plan on...
Reply
Re: 0% Copier Financing
Absolutely and 100% correct, word for word!!! Rental car is a much better example than my $100,000 house. As you can imagine, this topic is a pet peeve of mine!!!
Reply
Re: Competing against A4 sharps
These are A4 models?? First things first, I would tell them Sharp just lost another 1.4 billion dollars last quarter. With these types of losses, layoffs come first and then services deteriorate (hope I spelled that right) In the US Sharp in a minor player in the market. What happens IF sharp bails out of the US marketplace? Sharp makes too many average products and nothing that is over engineered. You get what you pay for. If these are A4's, I have major doubts about how they will hold up...
Reply
Re: The Top 10 Innovations in document management history
Somewhere towards the end of the list should be the introduction of devices that scan, followed the introduction of Document Mgt software. At any rate the speed of innovation in DMS is arching upwards rapidly in the last ten years.
Reply
Re: Managed Network Services discussion
Sounds like you guys have started a completely new division. As I said earlier there is no synergy, you had to completely start from scratch except for maybe billing, the overhead is incredible and let me guess none of them work on MFP's and the sales people don't want to sell it because its a PIA for little return. Next, let me guess, (if its not already) will be a quota on MNS tied to MFP payouts. If you sell $30k MFP's with no MSN Commission rate is X% if you sell some contracts it is...
Reply
Re: there is no end in sight to Sharp’s crisis.
From Industry Analyst. By Andy Slawetsky, President, Industry Analysts, Inc. Industry Analysts, Inc. has learned that Sharp Electronics has terminated their agreement with Xerox’s Global Imaging (GIS). The contract will end on November 26, 2012. After that date, GIS will no longer be able to purchase Sharp hardware and accessories. Sharp will continue to provide supplies and parts to GIS for the foreseeable future but they have eliminated discounts. According to Rich Boomsma, Senior VP of...
Reply
Re: there is no end in sight to Sharp’s crisis.
I don't understand this, GIS Dealers are the largest purchasers of Sharp devices. heck most GIS dealer sell more Sharp that Xerox to boot. Either GIS is demanding an agreement that is not profitable for Sharp or Sharp suddenly has another revenue source.
Reply
Re: Are you a Data Miner?
I would be careful doing email blasts because they can be looked like they are spam and you will be tracked down and fined if not worse. They are unsolicited advertising. I am not sure what the laws are in Canada but I have known people in the US for getting in trouble for doing this same thing when they were called out on it. There have been many studies on this topic and it has a very very low rate of return. Just look you sent 700 emails with only one small 20ppm unit sold. Most people do...
Reply
Re: Padded Lease Rates
0.019584 Means 4% And its not a "pad" its the same reason that Banks get a lower interest rate than you and I can on a mortgage. Imagine this a bank is borrowing at .025 percent from fed and lending at .0375 to you and me. Thats a 50% percent "Pad" our industry marks up only 4-10% and most of that is eaten up by administrative costs. Sales is break even at best, the real money is in the ongoing annuity and revenue stream from service.
Reply
Re: Padded Lease Rates
Sometimes the gap between the dealer rate and the reps rate is due to a lower rate negotiated by the dealer in return for using ABC Leasing vs XYZ Leasing or it may be tied to a promised annual volume that if unmet, results in a chargeback. Regardless, it's not wrong or immoral. It is what it is, just like cost markup or delivery charge or whatever. Now I admit I'm a bit of a terrorist when it comes to conventional logic, but I have always felt that my Aficio League points were dollars that...
Reply
Re: Leasing Company Copiers are Underwater
Found out today, that Assurant does cover floods, I actually got a document from them about their services and I'll post it here later. Seems like most BOP policies will not cover floods, and Assurant will. However this leads to another issue, when leasing companies ask for "proof of insurance" and get a copy of the rider, do they not check to see if their equipment is covered in case of flood? If they miss this and do not charge for insurance is it then their loss and not the lessee? Some...
Reply
Re: Leasing Company Copiers are Underwater
I'm in the same boat. I now think that taking the leasing company's insurance is the best option for the customer. My customers with leasing company coverage have had a delay of a few weeks but next week I will deliver the first unit that was covered. Took a while but its a done deal. Another customer with their own insurance immediately got new gear right away. They were dead in the water without equipment so they did a new lease. I put on my sales order clearly that it was the customer's...
Reply
Re: How do you feel about the industry?
I have been in the industry about 13 years, I would love to say 33 but I'm only 31 years old (just to rub it in Art!) If there is one thing I realized in my early years, you can't work somewhere for a year or so and go to the owner/manager asking for changes. You haven't earned your stripes yet, the business has seen hundreds of sales reps motivated with piss & vinegar ready to change the world and they crash and burn in the first 18 months. The typical copier vendors in my area have 50...
Reply
Re: Over Holding On MFP Lease Costs Unnecessary Dollars
Yes, AC68 that is exactly what we do for leases that go past expiry. We increase the cpc to what we call "market rate". Unfortunately, this makes the account easier for a competitive vendor to swoop in and "slam" the account with a new lease.
Reply
Re: Wells Fargo Rates
Ted: Wow, what rates! You know monthly rate checks posted here could all make us some extra cash. Thanx,
Reply
Re: Points added to lease rate factors
We do our own, we have the power to negoiate with the leasing companies for the best rate. However the less knowledgable reps rely on our lease admiistrator. I believe they are getting hammered for a few extra points (I hope not). Business is tough enough, owners should pass along the real rates. On another note, I was told that our "major lease vendor" CIT raised the 60 month rate factor for 20K to .0199 when they were at .0192. They claim they are not making money on the residuals, as of...